Shadetale is a small village of thirty or so people, assuming when the Wolf says, "No more than six hands is their number" that the hands in question have four fingers and a thumb. The town is surrounded by a mist-shrouded swamp haunted by shades and spirits. Likely this is the origin of the town's name.
Hood Episode One
In episode one the Wolf arrives in the small town to hunt for a witch. The townsfolk sent word to Ashbane that they needed a hunter from the hunter's guild. The guild sent one of their best, a Fenrirr. Shadetale is home to Ettlethorne, Elem the Weathermage, CourSid the Alchemist, Lady Marian Windlethorpe, and the Elder of the town.
Shadetale is also home to a girl named Cameron and her father, who owns the wealthy estate. However, the village has accused Cameron of being a witch. She has disappeared into the haunted forest, and her father has gone in search of her.